EXTRA PROBLEM

On January $1,$ ABC Company had $$190,000$ in Accounts Receivable and during the month had Credit sales of $$370,000$ and Cash sales of $$200,000.$ During January, ABC collected $$310,000$ on account and wrote off a $$12,000$ receivable. Also, during January, ABC had Sales Allowances of $$9,000$; Sales Discounts of $$16,000$; and Sales Returns of $$17,500.$ ABC managed to collect $$3,800$ of a previously written off account during January. The balance in the Allowance for Uncollectible Accounts on January $1$ was $$15,800.$

a$.$ Assuming that ABC estimates Bad Debt as $5\%$ of accounts receivable, what is the adjusting entry for bad debt expense?

$\backslash$table$[[$Ending Balance In Accounts Receivable,$],[x\%$ of Receivables Estimated to be Uncollectible,$],[=$ Desired Bal in Allow for Uncollectible Accts,$],[+$ Current Debit Bal in Allowance OR$,],[-$ Current Credit Bal in Allowance,$],[=$$ Amt in Adjusting Journal Entry,$]]$

$\backslash$table$[[$Date$,$Account,Debit,Credit$],[,,,],[,,,],[,,,]]$

b$.$ Assuming that ABC estimates Bad Debt as $4\%$ of Credit Sales, what is the adjusting entry for bad debt expense?

$\backslash$table$[[$Credit Sales,$],[x\%$ of Sales Estimated to be Uncollectible,$],[=$$ Amt in Adjusting Journal Entry,$],[$Date Accounts Debit Credit,$]]$